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A perpetuity includes:
Perpetuity is a type of regular payment at regular intervals which is likely to continue forever. The perpetuity will mean similar payments at similar intervals for unlimited period.
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- formula: Present / Future of General Ordinary AnuityWhat are the primary characteristics of an annuity? Differentiate between an “ordinary annuity” and an “annuity due.” Explain how the present value of an ordinary annuity interest table is converted to the present value of an annuity due interest table.When interest is calculated on the principal amount borrowed is known as what A. Annuity B. Simple interest C. Compound interest D. All of the above
- Define the following and provide respective examples;Simple interest Compound interestAnnual Percentage Rate – APR -Also, please provide a definition of a perpetuity and its formulaquestion: Identify the different types of annuities, calculate the present value and future value of both an ordinary annuity and an annuity due, and calculate the relevant annuity payments.Which of the following cannot be calculated? Select one: a. the interest rate on perpetuity given the present value and payment amount b. the present value of an annuity due c. the present value of a perpetuity d. the future value of a perpetuity
- What are the primary characteristics of an annuity? Differentiate between an “ordinary annuity” and an “annuity due.”General Annuity 1. Differentiate General Annuity and General Ordinary Annuity?2. What is a General Ordinary Annuity?3. Express the process in finding the Present and future value of Generalordinary annuity.4. What is the formula in finding the Fair Market Value?5. Express the process in finding the Fair Market Value.Explain how the present value of an ordinary annuityinterest table is converted to the present value of anannuity due interest table.
